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| e-scooter market set to touch Rs 500 cr |
| TE Narasimhan / Chennai Apr 29, 2009, 00:01 IST |
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The electronic scooter (e-scooter) market in India is expected to touch Rs 500 crore or 150,000 units in 2009-10.
Society of Electric Vehicles Manufacturers secretary and BSA Motors vice-president KB Srinivasan said in 2008-09, the industry was worth Rs 400 crore or around 110,000 units. At present, 80 per cent of e-scooters sales are from Tier II and III cities, while metros contribute 10-15 per cent.
Despite the slowdown, the scooter segment across all categories reported a 10 per cent growth and would continue to grow at 15 per cent for the next 3-4 years since customers don’t depend on credit.
The Society of Electric Vehicles Manufacturers, representing 32 electronic scooter and car manufacturers, was formed three months ago to increase penetration and create awareness.
The society has urged the government to frame a regulation for the e-scooter industry, which would control the unorganised sector. “Predominantly the e-scooter market was controlled by the unorganised sector, which had a market share of 50 per cent till last year. After big corporates started manufacturing and selling, it has come down to 30 per cent,” he said.
The industry would focus on research and development, he said, adding in 2008-09 the top four companies invested over Rs 100 crore in R&D.
The association is also seeking waiver of 8 per cent excise duty on e-scooters, which are manufactured locally. Srinivasan said currently there was no duty on imported finished e-scooters. This has led the unorganised sector to import vehicles. It has also sought uniform VAT, road tax and a subsidy policy for e-scooters.
Some of the major e-scooter manufacturers include BSA, TVS, Kinetic, Indus Elec-Trans and Hero Ulta. The top six players account for 60 per cent of the e-scooter market.
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